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Author Question: Skytalk Company manufactures weathervanes. The 2015 operating budget is based on the production of ... (Read 210 times)

fahad

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Question 1

Define variable overhead spending variance. Briefly explain why a favorable variable overhead spending variance may not always be desirable.

Question 2

Skytalk Company manufactures weathervanes. The 2015 operating budget is based on the production of 5,300 weathervanes with 1.25 machine-hour allowed per weathervane. Variable manufacturing overhead is anticipated to be $145,750. 

Actual production for 2015 was 5,250 weathervanes using 6,050 machine-hours. Actual variable costs were $21.75 per machine-hour. 

Required: 
Calculate the variable overhead spending and the efficiency variances.


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Marked as best answer by fahad on Mar 6, 2021

Rilsmarie951

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fahad

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Reply 2 on: Mar 6, 2021
Excellent


flexer1n1

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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